According to the IBM Cost of a Data Breach Report 2023, the global average data breach cost in 2023 was $4.45 million, a 15 percent increase over three years.

That’s why having a robust cybersecurity plan is imperative in the digital age. 

But no business is 100 percent safe from cyber threats. Bad actors are becoming more aggressive in exploiting gaps in digital security and stealing valuable information. The rise of remote work has exposed more points of attack. 

Crucial steps businesses can take to protect both their facilities and finances in the event of a natural disaster.

In recent years, there have been an increasing number of costly computer hacking attacks against large companies, such as Target and Home Depot. But smaller companies face computer liability risks as well. Virtually all businesses use information technology (IT) in some way—to communicate via email, to provide information or services through a website, to store and use customer data and more. Your business can be held liable if certain data is compromised, not only by hacking attacks but even if a smartphone is lost or a laptop computer is stolen.

No business is immune from disaster. Every year, businesses temporarily shut down—or close forever—because of a disaster such as a flood, fire, or hurricane. According to the Federal Emergency Management Agency (FEMA), 40 percent of companies do not reopen after a disaster, and another 25 percent fail within one year.

Fortunately, you can take proactive steps to mitigate the impact of a disaster on your business. In addition, carrying adequate insurance coverage can help your business get back on its feet quickly.

Injuries to employees can be devastating for businesses, especially small businesses with fewer employees available to take on new roles when an injured worker is on leave. While workers compensation insurance will help pay medical costs and replace an injured employee’s lost income, your business will have to absorb costs associated with reduced productivity, overtime, training replacements, and so on.

Businesses of all sizes face potential losses due to criminal activity. Depending on the nature, size and location of your business, your company may be vulnerable to various types of crime—from burglary to employee theft to fraud.

In addition to purchasing specialized crime (or “fidelity”) insurance, you will want to consider taking steps that prevent crimes from happening.

Preventing theft by outsiders

Taking precautions can deter criminals from targeting your business for burglary. Consider installing and maintaining:

Whether you own or lease a single business car or an entire fleet of commercial vehicles, you’ll need to purchase commercial auto insurance. Your insurance professional can help you weigh your risks and evaluate coverage options.

But even with insurance in place, you’ll want to take steps to prevent accidents and protect your employees and vehicles. Your business can reduce the chance of an accident by establishing and enforcing the following practices and policies.

Businesses that are forced to close down following a disaster run the risk of never being able to open their doors again. While there’s no way to lower the risk of a natural disaster like a hurricane, there are critical measures that can be taken to protect your company’s bottom line from nature’s fury. A disaster plan and adequate insurance are keys to recovery.